Economic Times reported Essar Ports has refinanced INR 405 crore loan in its subsidiary Essar Bulk Terminal Limited through India Infrastructure Finance Company.

An official statement said that Essar Ports has refinanced its INR 405 crore debt in a subsidiary Essar Bulk Terminal Limited through takeout finance scheme of India Infrastructure Finance Company Limited.

Refinancing is usually referred to the replacement of an existing debt obligation with a debt obligation under different terms.

The company has availed the takeout finance scheme to reduce its interest rate by over two and half per cent on INR 405 crore which is part of debt taken for building its 30 million tonne capacity bulk terminal at Hazira in Gujarat.

The statement further said that takeout finance of the infrastructure projects by IIFCL is a government initiative wherein an infrastructure project on commissioning can replace some of its costly domestic rupee debt with finances from IIFCL.

Source - Economic Times

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